Fox Corporation Reports 20 Percent Revenue Drop

Fox Corporation beat Wall Street expectations for its second quarter of 2024 on Wednesday, despite its quarterly results being dragged down by a 20% drop in total advertising revenue to $2 billion.

Here are the top-line results:

• Net income: $115 million, compared to $321 million in the prior year quarter
• Revenue: $4.23 billion vs $4.18 billion expected by analysts
• Adjusted Earnings Per Share: 34 cents vs 9 cents per share expected

The Wrap reports the drop in advertising revenue was primarily due to the absence of the FIFA Men’s World Cup at FOX Sports, lower political advertising revenues at the FOX Television Stations due to the absence of the 2022 midterm elections, and “the impact of elevated supply in the direct response marketplace, lower ratings and higher preemptions associated with breaking news coverage at FOX News Media.” Meanwhile, affiliate fee revenue grew 4% year over year to $1.78 billion, driven by 10% growth in the television segment.

The TV division reported $2.54 billion in revenue, including $1.65 billion in ad revenue and $70 million in affiliate fee revenue. The lower advertising revenue from the absence of the Men’s World Cup and lower political advertising at Fox Television stations was partially offset by continued growth at Tubi. The increase in affiliate fee revenue was led by higher rates at the company’s owned and operated stations and third-party fox affiliates. The segment’s other revenues were $132 million, primarily due to lower content revenues at the entertainment production companies as a result of the Hollywood strikes.

Lachlan Murdock

The cable network programming division reported a 2% increase in revenue to $1.66 billion. Affiliate fee revenues increased $5 million as contractual price increases were partially offset by the impact of net subscriber declines. Advertising revenues were $348 million as compared to the $451 million reported in the prior year quarter, primarily due to the impact of elevated supply in the direct response marketplace, lower ratings and higher preemptions associated with breaking news coverage at FOX News Media, and the absence of the Men’s World Cup at the national sports networks. Other revenues increased $124 million or 80%, primarily due to higher sports sublicensing revenues at the national sports networks.

“At the halfway point in our fiscal year, our results demonstrate the strength and durability of our core brands and their ability to deliver solid audiences across our portfolio,” Fox CEO Lachlan Murdoch said in a statement. “FOX Sports continues to benefit from the power of live sports programming and FOX News has maintained its leadership in cable news, while Tubi has been resilient in an increasingly competitive market. Combining this steadfast portfolio of assets with a best-in-class balance sheet underpins our ability to deliver value for our shareholders.”